Montana property tax rates for a primary residence run on a tiered scale from 0.76% to 1.90% of market value, with the lowest tier covering homes valued at or below the statewide median of $378,000.1Montana Department of Revenue. Quick Comparison of Property Tax Rates That percentage is not what you actually pay. It converts your market value into a smaller “taxable value,” which your county, city, and school district then multiply by their combined mill levy to produce the bill in your mailbox. Because Montana has no general sales tax, property taxes shoulder most of the funding for schools, roads, and local services.2Montana Department of Revenue. Sales Tax Guidance for Montana Business and Residents
Residential Rates for Primary Homes
The legislature replaced the old flat residential percentage with a tiered structure starting with the 2025 tax year.3Montana State Legislature. HB 231 and SB 542 Property Tax Changes Summary If the home is your primary residence or a qualifying long-term rental, the rate depends on where its market value sits relative to the statewide median, currently $378,000:4Montana State Legislature. Montana Code 15-6-134 – Class Four Property – Description – Taxable Percentage
- At or below $378,000: 0.76%
- Above the median but under 2× median: 0.90%
- 2× to under 4× the median: 1.10%
- 4× the median or higher: 1.90%
The tiers are marginal, the same way income tax brackets work. A $500,000 primary residence does not get taxed entirely at 0.90%. The first $378,000 is taxed at 0.76%, and only the portion above the threshold moves up to the next rate.
Non-Primary and Second Homes
If the property does not qualify as a primary residence or a long-term rental, the tiered structure does not apply. Vacation homes, short-term rentals, and other non-primary residential property are taxed at a flat 1.90% of market value, no matter what the home is worth.1Montana Department of Revenue. Quick Comparison of Property Tax Rates A $400,000 vacation home produces $7,600 in taxable value. The same $400,000 house lived in year-round produces about $3,071. That gap is why qualifying as a primary residence matters so much under the current rules.
Commercial, Agricultural, Forest, and Business Equipment
Montana sorts property into classes, and each class carries its own statutory rate.
Commercial and Industrial
Commercial and industrial property follows a tiered structure under the same Class 4 statute, with different breakpoints. Property valued below six times the median commercial and industrial value is taxed at 1.5%, and the portion at or above that threshold is taxed at 1.9%.4Montana State Legislature. Montana Code 15-6-134 – Class Four Property – Description – Taxable Percentage
Agricultural Land
Agricultural land is not taxed on market value. The Department of Revenue values it on productive capacity, meaning what the acreage can earn as farmland or ranchland, and the rate is 2.05% of that productive-capacity value.1Montana Department of Revenue. Quick Comparison of Property Tax Rates In dollar terms, the bill is far smaller than it would be if the same acreage were taxed at what a developer might pay.
Forest Land
Class 10 forest land is taxed at 0.37% of forest productivity value for tax years after 2024.5Montana State Legislature. Montana Code 15-6-143 – Class Ten Property – Description – Taxable Percentage Like agricultural land, it is valued on what it produces rather than its open-market price.
Business Equipment
Business personal property, meaning furniture, machinery, and tools owned by a business, is Class 8. Montana exempts the first $1 million of a taxpayer’s statewide aggregate market value. The next $6 million is taxed at 1.5%, and anything above that is taxed at 3.0%.6Montana Department of Revenue. Personal Property Most small businesses sit entirely within the exemption and owe nothing on their equipment.
From Taxable Value to Actual Bill
The statutory rate is only the first step. Once your market value is converted into taxable value, local governments apply their mill levy to get the dollar amount you owe. One mill equals $1 for every $1,000 of taxable value.7Montana State Legislature. Property Tax Overview County commissioners, city councils, and school boards each set their own levies every year, and the levies stack on top of each other.
Every property in Montana also pays a 95-mill statewide levy for public school equalization: 33 mills for elementary schools, 22 mills for high schools, and 40 mills for state equalization aid. The revenue flows into a statewide fund that narrows funding gaps between wealthier and poorer districts.8Montana State Legislature. 95 Mills State Special Revenue Voters can approve additional mills through ballot measures for projects like a new fire station or library expansion, and those add to the total.
A worked example for a $400,000 primary residence:
- First $378,000 × 0.76% = $2,872.80
- Remaining $22,000 × 0.90% = $198.00
- Taxable value: $3,070.80
If the total mill levy where that house sits is 500 mills, the annual bill is roughly $1,535 ($3,071 × 500 ÷ 1,000). The same home classified as a non-primary residence, with $7,600 in taxable value, would owe $3,800 under the identical levy.
Programs That Lower Your Effective Rate
Several programs reduce the tax burden for qualifying owners. Missing the application deadline forfeits the benefit for the whole tax year.
Property Tax Assistance Program
PTAP lowers the effective rate on the first $418,000 of a primary residence’s market value. Reductions range from 30% to 80% depending on income. Tax Year 2026 eligibility is based on 2024 federal adjusted gross income, with ceilings of $29,037 for single filers and $38,917 for married filers or heads of household.9Montana Department of Revenue. Property Tax Assistance Program You must own the home, live in it as your primary residence for at least seven months of the year, and apply by April 15.
Elderly Homeowner/Renter Credit
Montanans aged 62 or older who have lived in the state at least nine months and have total household income under $45,000 can claim a refundable income tax credit of up to $1,150. It applies to owners and renters alike, and because it is refundable, you receive the full amount even if you owe no income tax.10Montana Department of Revenue. Montana Elderly Homeowner/Renter Credit
Disabled Veteran Assistance
Veterans with a qualifying service-connected disability can receive a 50% to 100% reduction on their primary residence. For Tax Year 2026, the maximum qualifying income is $62,598 for single filers, $72,229 for married filers or heads of household, and $54,573 for unmarried surviving spouses.11Montana Department of Revenue. Montana Disabled Veteran Assistance Program Veterans at the lowest income levels receive the full 100% reduction.
Deadlines and Late Penalties
Montana property taxes come due in two installments: the first by November 30 (or within 30 days of the postmark on your tax notice, whichever is later) and the second by May 31.12Montana Department of Revenue. Residential Property – Residential Property Tax Payment Due Dates Missing either deadline triggers an immediate 2% penalty on the unpaid amount, plus interest at 5/6 of 1% per month (roughly 10% annually) that accrues daily until paid.13Montana State Legislature. Montana Code 15-16-102 – Time for Payment – Penalty for Delinquency
Delinquent taxes become a lien against the property, and the county offers those liens for sale at a tax lien sale the following July. After the sale, you have 36 months to redeem by paying all back taxes, penalties, and interest. If you do not redeem in that window, the lien purchaser can eventually apply for a tax deed and take ownership. That is the point at which letting a bill slide stops being an expensive mistake and starts costing people their homes.